Don’t you wonder if now is the time to start analysing the Vaneck Australian Bank ETF (ASX: MVB) and Vanguard All-World ex US Shares Index ETF (ASX: VEU)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and International shares sectors, respectively.
Is the MVB ETF a good investment? Here’s where you start…
The VanEck MVB ETF provides focused exposure to Australia’s largest industry, the banking sector. This is a low-cost way to invest in the Australian banking industry through a single fund.
According to our most recent data, the MVB ETF had $115.35 million of money invested. With MVB’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws the line at $100 million for ETFs in the Australian shares sector because we believe that, relative to smaller ETFs, achieving this amount of FUM lowers the chance that the ETF issuer will close the ETF.
Get our team’s MVB ETF review, available free when you click this link: access the free investment report.
A quick take of the VEU ETF
The Vanguard VEU ETF exposes investors to many of the largest listed companies from both developed and emerging economies around the world, excluding the US.
With our numbers for December 2020, VEU’s FUM stood at $1817.59 million. Since the VEU’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the VEU ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.09% for the VEU ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $1.80.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
Did you know: you can get our full ETF review of VEU by clicking here?